0001043337-26-000052
SEC filingA challenging quarter marked by a sharp revenue decline and widening losses, driven by the end of a European tachograph retrofit campaign and adverse sales mix.
Revenue for the first quarter of 2026 was $160.8 million, a decrease of 26.2% compared to $217.9 million in the same period last year. The decline was primarily driven by lower sales volumes in the European commercial vehicle market, resulting from the end of a Smart 2 tachograph retrofit campaign in 2025. This was partially offset by higher MirrorEye system sales and favorable foreign currency translation.
Gross profit decreased to $35.0 million from $46.3 million, with gross margin contracting to 21.7%. The margin compression was due to an unfavorable sales mix in the Electronics segment, driven by lower Smart 2 tachograph sales, which carry higher margins. The company continues to focus on margin improvement through material cost reduction and product quality initiatives.
Net loss for the quarter was $27.9 million, or $1.00 per diluted share, compared to a net loss of $7.2 million, or $0.26 per diluted share, in the prior year. The increase in net loss was driven by the operating loss and losses from discontinued operations related to the sale of the Control Devices business.
The company's liquidity position remains supported by cash flows from operations, cash on hand, and borrowings under its Credit Facility. However, future borrowing flexibility may be limited if lower global demand and challenging macroeconomic conditions persist. The company expects its principal sources of liquidity to be cash flows from operations, cash and cash equivalents, and borrowings from the Credit Facility.